Trump’s higher tariffs hit products from top U.S. trade partners

The higher import tariffs of 10% to 50% imposed by U.S. President Donald Trump on dozens of America’s trading partners officially came into effect this week. The measures mark a key test of Trump’s strategy to reduce the U.S. trade deficit without severely disrupting global supply chains, stoking inflation, or triggering harsh retaliation from key allies.

U.S. Customs and Border Protection began collecting the increased duties after weeks of uncertainty regarding the final rates and ongoing negotiations with key trading partners, who sought exemptions or reductions.

Goods already in transit aboard ships bound for the U.S. before the deadline may still be subject to the previous, lower tariff rates if they arrive before October 5, according to a notice sent to shippers this week. Previously, many imports were subject to a flat 10% rate, after Trump had paused the full implementation of the increases announced in April.

However, Trump has since revised the tariff plan several times, sharply increasing duties for specific countries. Brazil now faces a 50% tariff, while Switzerland, Canada, and India face tariffs of 39%, 35%, and 25%, respectively. On Wednesday, Trump separately announced a new 25% tariff on Indian goods to be imposed in 21 days, citing the country’s continued purchases of Russian oil.

Ahead of the deadline, Trump touted the “billions of dollars” expected to flow into the U.S. as a result of the tariffs, claiming that many countries had long taken advantage of the United States.

“The only thing that can stop America’s greatness is a radical leftist court that wants to see our country fail,” Trump wrote on his social media platform.

Eight major U.S. trading partners—representing around 40% of U.S. trade flows—have reached agreements with the Trump administration, offering trade and investment concessions in exchange for reduced tariffs. These include the European Union, Japan, and South Korea, which secured a 15% base tariff. The UK was granted a 10% rate, while Vietnam, Indonesia, Pakistan, and the Philippines were granted rates of 19–20%.

“For these countries, the news is less bad,” said William Reinsch, senior adviser and trade expert at the Center for Strategic and International Studies in Washington. “There will be some supply chain rearrangement. A new balance will emerge. Prices will rise here [in the U.S.], but it will take time for that to be felt significantly,” he added.

Countries facing the steepest tariffs, such as India and Canada, are expected to continue negotiating to reduce their exposure, Reinsch noted.

Trump’s order also targets transshipped goods—products rerouted through third countries to bypass tariffs—which will face an additional 40% import tax. However, details on enforcement mechanisms remain unclear.

The July 31 executive order set tariffs above 10% for 67 trade partners, while those not listed remain subject to the base 10% duty. The tariffs are part of a broader, multi-layered strategy that includes national-security-based sectoral tariffs on items such as semiconductors, pharmaceuticals, automobiles, steel, aluminum, copper, and timber. Trump also signaled on Wednesday that tariffs on microchips could reach 100%.

China, meanwhile, faces its own set of looming tariff threats. Unless Trump extends the current truce, a separate tariff hike is scheduled for August 12. Trump has also threatened additional penalties on China for its continued purchases of Russian oil, as he seeks to further pressure Moscow to end its war in Ukraine.

Source: Valor Econômico

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